Engineering a culture that promotes innovation

Abstract

In today's world, innovation has become a well-worn, sometimes over-used buzzword. Much of today's innovation is mainly linked with new technologies. Many companies talk about innovation using new metrics like "innovation premium," and they would like to be on the "Top 100 Most Innovative" list published by Forbes every year. This thesis seeks to answer the following questions: Do the CEOs of the most innovative companies create a unique environment within their organizations? Do they create an internal culture that supports employees who have ideas for innovative products or services? What can a CEO do to influence the company's shared attitudes, values, goals, and practices which in turn promote innovation? What are the main elements that influence internal culture and make it more innovative? To answer these questions, I reviewed the research literature by scholars and researchers on innovation. I also reviewed literature about the kind of organizational culture that promotes innovation. In addition, I interviewed nine leaders from several companies generally regarded as being innovative to inquire how they fostered an innovative environment. From this study, I identified three main elements that I think are key to creating a culture that promotes innovation. After determining the critical elements necessary for innovation, I interviewed 17 individuals from P-Automotive (a pseudonym). I asked them to discuss how their internal innovation culture relates to the three main elements. Based on what I learned from the research literature, the innovative leader interviews, and the case study of P-Automotive, I provide several general recommendations and several specific recommendations (for P-Automotive) for fostering an innovative organizational culture.